Trade-Ideas LLC identified

Mettler-Toledo International

(

MTD

) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Mettler-Toledo International as such a stock due to the following factors:

  • MTD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $89.5 million.
  • MTD has traded 102,991 shares today.
  • MTD is trading at 1.51 times the normal volume for the stock at this time of day.
  • MTD crossed above its 200-day simple moving average.

'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize on. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in MTD with the Ticky from Trade-Ideas. See the FREE profile for MTD NOW at Trade-Ideas

More details on MTD:

Mettler-Toledo International Inc. manufactures and supplies precision instruments and services worldwide. The company operates in five segments: U.S. Operations, Swiss Operations, Western European Operations, Chinese Operations, and Other. MTD has a PE ratio of 25. Currently there is 1 analyst that rates Mettler-Toledo International a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for Mettler-Toledo International has been 210,400 shares per day over the past 30 days. Mettler-Toledo International has a market cap of $8.3 billion and is part of the health care sector and health services industry. The stock has a beta of 0.97 and a short float of 4.9% with 4.27 days to cover. Shares are down 7.8% year-to-date as of the close of trading on Tuesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Mettler-Toledo International as a

buy

. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, notable return on equity, expanding profit margins and relatively strong performance when compared with the S&P 500 during the past year. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • METTLER-TOLEDO INTL INC has improved earnings per share by 6.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, METTLER-TOLEDO INTL INC increased its bottom line by earning $12.52 versus $11.48 in the prior year. This year, the market expects an improvement in earnings ($14.22 versus $12.52).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Life Sciences Tools & Services industry average. The net income increased by 1.8% when compared to the same quarter one year prior, going from $121.17 million to $123.35 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Life Sciences Tools & Services industry and the overall market, METTLER-TOLEDO INTL INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for METTLER-TOLEDO INTL INC is rather high; currently it is at 59.22%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 18.31% is above that of the industry average.
  • MTD, with its decline in revenue, slightly underperformed the industry average of 3.5%. Since the same quarter one year prior, revenues slightly dropped by 3.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.